§ 3.31 p.m.
§ THE LORD PRESIDENT OF THE COUNCIL (LORD WOOLTON)My Lords, by leave of the House, I should like to make a Statement which is being made at this moment in another place by my right honourable friend the Minister of Agriculture. It is in reference to the Special Price Review of agricultural prices, about which your Lordships inquired a short time ago. The Minister's Statement is as follows:
"I should first explain that the Special Review which took place recently under the authority of the previous Government was a Review under Section 2 of the Agriculture Act, 1947, not of prices but of the economic condition and prospects of the agricultural industry, as affected by the latest awards of the three Agricultural Wages Boards for the United Kingdom. The Government have now considered the effect of these awards on the economic condition and prospects of the industry, and have also taken note of other increases in costs that have taken place since the Annual Review of last February.
"The Government have decided that a case exists for adjusting those farm prices which were fixed after last February's Annual Review, so as to take account of the sudden and substantial change in labour costs resulting 630 from the awards of the Agricultural Wages Boards. I will circulate a statement giving the price increases and the dates from which they will operate. It will be possible in the case of milk but not for other commodities, to make the new price retrospective to the dates on which the increased wages become payable in England and Wales, and Scotland respectively.
"I have said that other increases in costs have also been examined. Of these the most notable single item, both in magnitude and in regard to its potential effect on production, has been the steep rise in fertiliser prices. The excess increase over the estimate used for the purpose of last February's Annual Review is equivalent to an annual rate of just over £9,000,000. We have decided that this is a matter which should be dealt with separately by means which will most effectively encourage the proper use of fertilisers on crops and grass. Arrangements are being made accordingly for the payment of a contribution towards the cost of acquiring phosphatic fertilisers in the United Kingdom. The contribution will be at a rate equivalent to about 30 per cent. of the present cost to farmers and will apply to all phosphatic fertilisers bought between July 1 last and June 30, 1952. I shall in due course ask Parliament to make the necessary provision.
"These measures will partly offset the increased costs of production arising from higher wages and other causes. Since it is our policy to curb Government expenditure, they will be counted against the food subsidies and will involve increases in some food prices if the level of the subsidies is not to be increased. My right honourable friend the Minister of Food has already announced an increase of ld. per quart in the price of milk and he will be making further announcements as and when necessary.
"The Government recognise that the rapid and substantial increases in costs which have taken place this year have created severe difficulties for agriculture, as for other industries. Necessarily these problems must be considered in relation to the general economic condition of the country and defence requirements. The whole 631 economy is seriously overloaded; there are grave external financial difficulties; and we have heavy defence commitments. One of the most important contributions that can be rendered to agriculture is for the Government to press on with the attempt to get control of inflationary tendencies. The farming community will be among those who will benefit by reason of successful policies in this regard.
"It will require more time than has so far been available to the present Government to balance, on the one hand, the nation's food production requirements and appropriate ways and means of enabling the agricultural industry to meet them, and, on the other, the national economic and material resources which are likely to be available for that purpose. We are applying ourselves to that task with energy and determination; we have made these present awards; and we
| — | Prices fixed after the last Annual Review | Notes | Price Increases | Operative Date | |
| Crops: 1952 harvest | |||||
| Wheat, per cwt. | 29s. | — | 6d. | 1. 7.52 | |
| Rye, | 21s. 6d. | (i) | 6d. | 1. 7.52 | |
| Barley, | 23s. | (i) | 6d. | 1. 7.52 | |
| Oats, | 20s. 8d. | (i) | 6d. | 1.7.52 | |
| not earlier than | |||||
| Potatoes, per ton | 232s. | (ii) | 7s. | 1. 8.52 | |
| Sugar beet | 108s. 8d. | — | 3s. 6d. | 1. 7.52 | |
| Livestock products: 1951–1952 | |||||
| Fat cattle, per live cwt, | 116s. 11d. | (iii) | 4s. | 3.12.51 | |
| Fat sheep and lamb, per lb. dressed | 2s. 5d. | — | ¾d. | 3.12.51 | |
| Fat pigs, per score, dead weight. | 53s. 2d. | (iii) | 5d. | 3.12.51 | |
| Eggs, per doz. | 4s. 3½d. | (iv) | 1d. | 6.12.51 | |
| Milk, per gall. | 2s. 11¾d. | (v) | 0.68d. | England and Wales Scotland Northern Ireland | 21.10.51 5.11.51 |
| Wool, per lb | 6s. | — | ½d. | 7. 1.52 | 1. 5.52 |
- (i) Columns 1 and 3 refer to the minimum price only.
- (ii) Column 1 refers to standard ware potatoes only; Column 3 applies to substandard ware as well.
- (iii) For cattle column 1 refers to steers, heifers and cow heifers, but column 3 applies to other classes of adult cattle as well. For pigs, column 1 refers to clean pigs in quality weight ranges, but column 3 applies to other pigs as well.
§ intend to do our utmost in the circumstances I have described to ensure that agriculture can make the fullest possible contribution both to the nation's food requirements and towards the solution of its economic problems."
§ Following is the Statement of Price Increases and Operative Dates referred to:
§ The price increases shown in the Table are average annual increases for agricultural commodities in the United Kingdom covered by the First Schedule of the Agriculture Act, 1947. For crops these increases apply to the 1952 harvest, and for livestock products other than wool the increases will begin at the dates stated in the Table. In the case of wool the increase shown will be added to whatever guaranteed price is fixed for the 1952 clip. For practical reasons the price increases for particular grades of produce, or for produce marketed in particular months or from particular areas, may differ slightly from those set out in the Table. For livestock products the prices quoted as having been fixed after the last Annual Review include small once-for-all amounts added in respect of the deferment of the 1950 Special Review.
§ (iv) Column 1 refers to hen eggs sold through packing stations; Column 3 applies, as well, to an increase in the guaranteed minimum price for duck eggs.
§ (v) Columns 1 and 3 refer to the average pool price plus production bonus and quality premiums. The operative dates are those on which in the three countries revised wage rates came into force or are in prospect.]
633§ My Lords, I am grateful to your Lordships for allowing me to interrupt your proceedings with this somewhat lengthy Statement. My right honourable friend and I thought it was of such importance that you would like to hear it at once.
§ VISCOUNT JOWITTMy Lords, I am grateful to the noble Lord for making this Statement. It is obviously of considerable importance. He will not expect me to comment on it at the present time, since, clearly, it is a matter which demands careful consideration. I fully understand the circumstances which may have seemed to make it necessary to act on these lines, and I welcome the fact that steps are being taken to deal with these troubles. I do not know whether the noble Lord can tell me to-day what amount is here contemplated. I understand that the amount which is to be spent as a subsidy on fertilisers is to be taken off the food subsidies.
§ LORD WOOLTONThe amount for fertilisers is about £9,000,000.
§ VISCOUNT JOWITTOf course, the noble Lord is not prepared to say what particular prices will be affected. It is obvious that this is a matter which we must discuss at a very early date, when the noble Lord will be able to give us all the particulars that we desire on what is clearly an important point of policy.
§ LORD WOOLTONMy Lords, I shall be glad to meet the convenience of the House. If, after reading the Statement, your Lordships feel that we should have a debate, I am, of course, at your disposal.